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Basis for National Health Reform payments – Tasmania 2019-20

The basis used to determine NHR payments to LHNs in Tasmania was advised by the Tasmanian Department of Health and Human Services to be as follows:

NHR payments in Tasmania are based upon the activity outlined in the annual Service Plan between the Minister for Health and the Secretary of the Tasmanian Department of Health.

The annual service plan outlines:

the schedule of services to be delivered by or on behalf of the THS and the funding to be provided in relation to the provision of those services

standards of patient care and service delivery

performance standards, performance targets and performance measures for the THS

requirements for the THS to report on its performance, as required or otherwise

a performance management process that is to be in continuous operation in respect of the THS

To provide consistency in methodology and consistency with the National Health Reform Agreement (the Agreement), the 2019-20 Tasmanian Funding Model has adopted the National Weighted Activity Unit (NWAU) as the currency for Activity-Based Funding, with the applicable version being NWAU19, National Efficient Price (NEP19) and where applicable National Efficient Cost (NEC19).

The ABF funded facilities service profile are developed in negotiation with the THS as follows:

Acute admitted and Sub and non-acute service activity volumes are modelled based historical activity data and agreed growth rates and adjusted for known service provision changes.

Emergency Department and Outpatient service volumes are modelled based on agreed growth rates and other known historical data factors.

Teacher Training and Research, Home Ventilation services are modelled based on historical expenditure profiles and funded via the National Block Funding model of NEC19.

Non-NHRA and non-hospital services are block-funded. The Block Funding is based on historical expenditure profiles.

The ABF block funded facilities which is the small regional and remote hospitals, stand - alone hospitals providing specialist Mental Health services (admitted and non-admitted), adolescent mental health services (CAMHS) are funded using the NEC19 model with some modifications where applicable.

The 2019-20 Tasmanian Funding Model also provides funding via operational and block grants to the THS covering services provided and activities undertaken that are not within scope for ABF, for example, cross-border, dental services, primary care, home and community care.